In October of the past year, the government organization Trading Corporation of Bangladesh (TCB) initiated a program to sell oil, pulses, and rice through trucks, aimed at people with low incomes. Consequently, even those without a TCB family card could buy these goods at subsidized prices; daily, over 24,500 people in Dhaka and Chittagong could purchase these items. However, this program was discontinued after just two months and seven days.
On the other hand, the Agriculture Marketing Directorate also started a similar program in October to sell agricultural products at subsidized rates through trucks, which has also been recently stopped. Additionally, due to allegations of irregularities, 4.3 million out of the 10 million family cards issued by TCB across the country have been cancelled.
Economists argue that with the current high inflation, low and limited income people are already struggling. In this situation, rather than reducing or stopping such programs like truck sales, there should be an expansion. The cessation or reduction of these activities will only increase the hardships of the poor.
Truck Sale Stopped
Throughout the last year, the country’s people were under pressure from high inflation. According to the Bangladesh Bureau of Statistics (BBS), food inflation remained in double digits for nine consecutive months. Particularly around the middle of the year, prices of daily essentials like rice, onions, potatoes, chicken, and eggs suddenly increased.
In such a scenario, from October 24, TCB started selling goods through trucks at 50 locations in Dhaka and 20 in Chittagong. Each truck was stocked for 350 customers, allowing each consumer to buy a maximum of two liters of edible oil, five kilograms of rice, and two kilograms of lentils. This saved each buyer at least BDT 350 or more. This operation ceased after December 31.
TCB officials have stated that they started this truck sale program temporarily on the instructions of the Ministry of Commerce in October, extending it until December 31. Without further directives from the Ministry, sales have been stopped, but they would resume if new instructions are received.
Commerce Advisor Sheikh Bashiruddin, when asked, told newsmen, “We are aware of this issue. The truck sale operation will be reconsidered.”
Meanwhile, from September to October, there was an unusual rise in the prices of various vegetables including chicken and eggs. In response, the Agricultural Marketing Directorate started selling some agricultural products like potatoes, eggs, onions, and pointed gourd at affordable prices through trucks in Dhaka and Chittagong. This program was also stopped after December 27.
The Director General of the Agricultural Marketing Directorate, Md. Masud Karim, mentioned that the vegetable prices have come down, leading to the suspension of the truck sale program for agricultural products. However, if the government desires, they can work on any agricultural product that remains expensive.
Reduction in Family Cards
Previously, TCB used to sell goods at affordable prices through dealers in Dhaka and various parts of the country using trucks. However, in June 2022, the truck sale was replaced by the ‘Family Card’ program for low-income people. Under this initiative, TCB was selling several items to one crore (10 million) families every month. A buyer could purchase up to two liters of edible oil, two kilograms of lentils, one kilogram of sugar, and five kilograms of rice per month through these cards.
However, there were widespread allegations of irregularities in the distribution of these family cards during the previous Awami League government. After the interim government took charge in August, they decided to investigate these irregularities. Following various verifications, 4.3 million cards were cancelled.
TCB officials have stated that those who received cards through irregularities in the past have been removed from the list. Among the remaining 5.7 million families, smart cards have been distributed from last Wednesday to replace the old paper ones, with the process continuing in phases until it reaches one crore.
Outside of TCB, the Food Directorate also sells rice and flour at open market sales (OMS) for low-income people. In Dhaka, through 191 sales centers, including 70 truck-based ones, consumers can buy up to five kilograms of rice for BDT 30 per kilogram and five kilograms of loose flour for BDT 24 per kilogram.
Officials from the Food Directorate mentioned that apart from Dhaka, the OMS program is currently operational in four labor-intensive districts (Dhaka, Gazipur, Narayanganj, and Narsingdi), all city corporations, and district municipalities. There are also discussions about expanding this program to the upazila level, with a decision expected this month.
When TCB started the truck sale program in October, they mentioned that if inflation did not become bearable, the program might be expanded later. According to BBS, even in the latest December data, food inflation was at 12.92 percent. Despite vegetable prices not coming down significantly, the duration of TCB’s truck sale program was not extended, leading economists to believe that the general public’s hardship will increase.
M.A. Razzak, Chairman of the non-governmental research institute Research and Policy Integration for Development (RAPID), told Prothom Alo that stopping the truck sale program was not the right decision. The goods meant for the 4.3 million cancelled family cards could have been sold through OMS or truck sales, providing relief to the common people.